MKTG500 MARKETING CONCEPTS Summer 2011 DR. HIEU NGUYEN HBS CASE: IKEA INVADES AMERICA 1.

. What factors account for the success of IKEA? 2. The fact that IKEA hopes to have 50 stores in operation in the US by 2013 is an indication of how optimistic the company is about the viability of its value proposition in this country. Do you think IKEA is being overly optimistic in its growth plans? How would you improve IKEAs value proposition to make it even more attractive to American consumers? 3. To achieve the kind of growth the company is hoping for, should IKEA change its product strategy? If so, in what way(s)? What about its product range - are there limitations to the matrix approach? Should the company expand its product lineup to include a greater number of styles and price points? In what other ways should the company consider changing its product lineup? 4. Some industry observers have suggested that IKEA open a number of smaller, satellite stores across the US (e.g. in shopping malls, strip malls, etc.). By offering a limited range of IKEA products, these IKEA Lite shops would presumably give consumers who do not otherwise have access to a full-size IKEA the opportunity to experience the brand. In addition, consumers who do live near a full-size IKEA would be able to use these minioutlets to make minor purchases. Do you agree with this idea? Why or why not?